Austin Powder Co. v. Commercial Lead Co.
Missouri Court of Appeals
Appeal from St. Louis City Circuit Court. — Ho». Chas. Claflin Allen, Judge. (1) The trial court erred in holding that the defendants had a right to set off against their liability on its unpaid corporate stock owned by them the amounts which the corporation owed them for loans. The corporation being insolvent, and no longer a going concern, its assets consisting of these liabilities of stockholders, were a trust fund for all its creditors.
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Appeal from St. Louis City Circuit Court. — Ho». Chas. Claflin Allen, Judge. (1) The trial court erred in holding that the defendants had a right to set off against their liability on its unpaid corporate stock owned by them the amounts which the corporation owed them for loans. The corporation being insolvent, and no longer a going concern, its assets consisting of these liabilities of stockholders, were a trust fund for all its creditors. Shickle v. Watts, 94 Mo. 418; Green v. Conrad, 114 Mo. 671. (2) By its decree the court permitted one class of the corporation’s creditors to absorb all…
1Opinion of the CourtGoode, J.
This case is in the nature of a suit in equity against the Commercial Lead Company, a corporation, and the individual defendants as holders of unpaid shares of stock in it. Whether or not said defendants are the only stockholders of the company is nowhere stated in the record, but it seems they are not; for numerous other defendants were originally proceeded against and the suit dismissed later as to them for some reason not stated. The company was organized in the summer of 1903, with a capital stock of sixty thousand dollars. All the shares of the original capital stock were subscribed and…
2Cases cited7 opinions
- Shields v. HobartSupreme Court of Missouri · 1903
- Jerman's Adm'r v. BentonSupreme Court of Missouri · 1883
- Merchants' Insurance v. HillMissouri Court of Appeals · 1882
- Washington Savings Bank v. Butchers & Drovers' BankSupreme Court of Missouri · 1895
- Webber v. LeightonMissouri Court of Appeals · 1880
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3Cited by1 opinion
- Yardley v. Caruthersville Motor Co.Missouri Court of Appeals · 1931